Investing in Ethereum -How to Buy Your First Ethereum
Investing in Ethereum and other CryptoCurrencies is the current trend. Ethereum is a crypto currency that lately has been making great impact in the world of digital currency. Basically, it is a decentralized platform for developers to build apps on top of it. It is an open-source, public blockchain-based distributed computing platform featuring smart contract functionality, which facilitates online contractual agreements.
Ethereum was first processed in the year 2013 by Vitalik Buterin, a crypto currency researcher and programmer. If you are interested in Investing in Ethereum, then here is a guideline on how to buy your first Ethereum.
However, if you are still at a loss as to what Crypto currency is all about, which Ethereum is one, then read on for a clearer understanding the new digital money.
Crypto currency — What Is It?
Crypto currency also known as digital currency or electronic currency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and control the creation of additional units of the currency. They are a subset of alternative currencies, or specifically of digital currencies.
Crypto currencies are exchanged just like normal Fiat currencies such as USD, or GBP etc., the only difference being that transactions involving crypto currencies are done electronically.
History of Crypto currency
In 2009 a pseudonymous developer by the name Satoshi Nakamoto created the first digital currency known as Bitcoin. After the emergence of Bitcoin, which during a period of about a couple of years skyrocketed in both recognition and value, we saw the digital currency market flooded with several other crypto currencies. Today, there are more than a hundred different crypto currencies in the market, and like every other medium of exchange, each has its own features and value.
One unique thing about crypto currencies is that their anonymous nature of transactions makes them well-suited for a host of nefarious activities, such as, money laundering and tax evasion.
Crypto currency — Pros & Cons
Undoubtedly, crypto currency may change the way monetary transactions are done. The new currency has attracted the attention of both the media and the government which has raised many unanswered questions mainly on the opportunities of digital currencies and the risks that may be involved with it.
To answer some of those questions we need to look at the pros and cons of digital or electronic currencies.
- Fraud — Unlike fiat currencies, digital currencies cannot be counterfeited or arbitrarily reversed by the sender, as usually happens with credit card charge backs.
- Identity Impersonation — When you make payments using a credit card, you give out all your details on the merchant site, even with transactions that involve little amounts. The store initiates the payment and pulls the designated amount from your account. In this way your credit card operates on a “pull basis”. But with crypto currency, the “push” mechanism is in play, which allows you to send the exact amount you want to the merchant or recipient with no further information.
- No Third Party Delays — Some purchases always involve a number of third parties like Lawyers and Notary, which may result in delays, and payment fees. But, the crypto currency blockchain that serve as database for all transactions done can eliminate or add third party approvals, reference external facts, or be completed at a future date or time for a fraction of the expense and time period required to complete traditional asset transfers.
- Accessibility — With the number of Internet users growing by the day, most people can easily have access to creating a crypto currency wallet even when they don’t have access to traditional exchange systems.
- Lower Fees — There are little or no transaction fees for crypto currency exchanges. Transaction fees are mainly from the third-party exchange service providers like Coinbase. These service providers use cash or credit cards for exchange of Bitcoins, Ethereum etc.
- Privacy — Every other e-wallet account of yours is owned by some other person. E-wallets accounts like PayPal never give their customers total privacy to their accounts. Your account can be frozen at any time without notice if they feel you have violated some of their rules. But, with crypto currency, you have a 100% privacy of your account. You own the private key and the corresponding public key that makes up your wallet ID. No other person have the right to alter or take it away from you.
- Low Popularity — The fact cannot be denied that many people are still unaware of crypto currency, nor understand how to do transactions with the currency.
- Need for Awareness — It takes intensive and proper educating about crypto currencies for people to be able to apply it to their lives.
- Low Acceptability — Although many business, including fortune 500 companies now accept crypto currencies as payment methods, there are still many more that are yet to include digital currency as payment method.
- High Risk of Loss — Crypto currency like Bitcoin has a private and public key for users to access their accounts with. This being a personal tool, if lost or forgotten, you have no way to recover your account.
Investing in Ethereum
Are you thinking about whether to start Investing in Ethereum? Among the over 100 crypto currencies in the market, the most favorable one in terms of investment is Ethereum. Why Investing in Ethereum is a good choice is because it has a unique feature that differentiates it from other cryptocurrencies. Notable companies have invested their interest in the Ethereum currency. This is because of the Ethereum Enterprise Alliance (EEA). The Ethereum price and popularity have skyrocketed of lately.
To buy your Ethereum follow these steps.
For clarity sake, before we talk on how to buy Ethereum, you need to know that the currency for Ethereum platform is known as Ether. It is what will be required by anyone wishing to build upon or use the Ethereum platform.
The easiest way to buy Ethereum Ether would be through Coinbase
(if it’s available in your country)
- Open a Coinbase account
- Add your payment method (Credit card or bank account)
- Go to “Buy/Sell” and select the amount of Ethereum you want to buy
- Click “Buy Ethereum”
Coinbase will charge you a fee of 1.49%-3.99% depending on your payment method (credit card have a higher fee than wire transfer)
Another way to buy is through Cex.io
CEX.io is a Bitcoin exchange that also sells Ethereum (ETH) via a credit card. The fees for on CEX.io are already calculated into the exchange rate, that’s why it will seem higher than other exchanges. For example, the exchange rate for 1 ETH on Coinbase is $19.62 while on CEX.io it’s $21.08. However, unlike Coinbase, CEX.io is available in all countries of the world.
- Open a CEX.io account
- Add your payment method (Credit card or bank account)
- Go to “Buy/Sell” and select Ethereum
- Choose the amount of Ethereum you want to buy
- Click on “buy Ethereum”
Best Broker for Ethereum Investment
Now you all set. You have money on your Ethereum wallet. If you are thinking to Start Investing in Ethereum, then Markets.com is the best broker to invest. They offers the best return on investment. Just signup and start your investing business.
Ethereum is the rising star in the world of Crypto Currency. Investing in Ethereum will be a wise decision to get a higher return.
Related Post: Ethereum Cryptocurrency a New Direction for Investment
Originally published at forex-trade-center.com on July 12, 2017.